When the music stopped Tuesday afternoon, CEOs of three large public companies sat in new seats.
announced on Tuesday afternoon that CEO Mark Parker would step down by the end of the year and be replaced by ServiceNow Inc.
CEO John Donahoe. Just minutes later, ServiceNow said the new CEO will be Bill McDermott, who resigned as CEO of SAP SE
less than two weeks ago.
The move to Nike continues a series of changes at the top of leading active clothing companies. Earlier Tuesday, Under Armor Inc.
UA, + 6.88%
announced that CEO and Founder, Kevin Plank, will step down to CEO. Adidas SE
announced Monday that high profile executive Eric Liedtke, widely regarded as a future managing candidate in that company, would leave by the end of the year.
The best sportswear companies have been embroiled in controversies involving athletics college, which landed a former Adidas leader a prison term earlier this year. Renowned track coach Alberto Salazar was recently hit with a four-year ban by the US Anti-Doping Agency for testosterone experiments on athletes who were reportedly bankrolled and supported by Nike, though Parker told CNBC that the scandal was unrelated to his planned departure.
Donohoe's departure for Nike seemed to shock Investors ServiceNow, which sent shares in the cloud software company down more than 10% in afternoon trading. Donahoe, who previously served as CEO of eBay Inc.
and Chairman of Paypal Holdings Inc.
had led ServiceNow since April 2017, and its shares had increased more than 160% since taking the helm.
"ServiceNow is a special company and the leadership team has been an honor," Donahoe said in a statement as he walked out the door to lead a high-profile Dow Jones Industrial Average
McDermott & # 39; s exit from SAP earlier this month was a surprise to many observers. SAP said at the time he had decided not to renew his contract, which led to the company activating a success plan that included naming Jennifer Morgan and Christian Klein as co-CEOs.
"The Board of ServiceNow is thrilled to have Bill McDermott join the company," said Jeff Miller, Independent Director of the ServiceNow Board. "His global experience and proven track record will ensure a smooth transition and continued strong leadership."
While ServiceNow shares hit a big hit in late trading on Tuesday, Nike shares were up 0.4% in the aftermath and SAP's US-traded shares were unaffected.